Amazon Seller Competition Drops by 21%: What This Means for Brands

Amazon sellers are witnessing a change in the marketplace. Recently released data indicates Amazon seller competition is down 21%, providing a new chance for brands to gain market share and visibility.

With less sellers competing for the same product categories, brands can manage advertising, optimize product listings, and target buyers more strategically for a competitive edge.

Why Is Seller Competition Down?

There are several contributing factors:

1. Adjustments for Marketplace Saturation – Many of the smaller seller competitors are leaving overly competitive categories as the combination of rising advertising costs and operational logistics chasing the Amazon dream have gotten too much for some sellers to manage.
2. Changes in Consumer Demand – Consumer trends and seasonal behavior can lend itself to heavy competition dropping off in some categories.
3. Amazon’s Policy Updates – Changes in the rules for sellers, and the stricter requirements for maintaining an account including account health checks and performance metrics may have pushed unprepared sellers too far.

This is the time to pivot once again. Brands that can respond to another shift in Amazon seller competition can leverage improving sales and ad performance.

How Brands Can Benefit

Now that seller competition is down, here’s what brands can do to take leverage that value:

1. Optimize Product Listings

Fewer competing products should mean your product listing is seen more often. Focus on:

• High-quality images and videos
• Clear, concise and compelling product description and copy.
• Titles and bullet points with strong keywords related to the product.

2. Adjust Amazon Ads

In less competitive environments, the CPC Sponsored Products and Sponsored Brands campaign is naturally lower. Brands are able to:

• Increase bids on high-performing keywords
• Expand campaigns into related categories
• Test entirely new ads for targeting products and getting better visibility.

3. Monitor Competitor Activity

In a less competitive scenario, it is still important to know what your competing sellers are doing.

• Stay on top of new sellers, early entry changes, stay on top of price changes.
• Study the highest performing listings for learnings.

4. Leverage Amazon Analytics

Amazon report and analytics tools provide a powerful mechanism to track sales, impression, and conversion rates. With less competition the data has the opportunity to give you more accurate and useful insight into the things that matter most to your growth.

What This Means for the Future

This 21% seller competition drop isn’t permanent. The categories will eventually come back into check with new sellers inevitably entering and competition at least coming back to where it had been. Brands that take advantage now will have built a stronger position in the market and potentially loyal customers against the return of competition.

From maximizing Gutenberg listings, knowledge on smart ad expenditure and behaviors driven on data analytics you will continue to remain competitive when the competition forces you back into the building stage.

Conclusion

A decline in Amazon seller competition presents a rare opportunity for brands to gain market share, improve ad performance, and increase visibility. By taking proactive steps—optimizing listings, adjusting advertising, and tracking competitors—brands can capitalize on the temporary shift and set themselves up for long-term growth.

For brands looking to get the most out of Amazon’s evolving marketplace, partnering with experts like GoAmify can help ensure you stay ahead of the curve and maximize ROI.